NRS 669A.170 Certain
organizational structure required for domestic family trust company; authority
to do business in this State required for foreign family trust company.

NRS 669A.180 Certain
provisions required in articles of incorporation, certificate of incorporation
or articles of organization of domestic family trust company; limitation on use
of certain names by foreign trust company.

1. There exists a need to modernize trust
company laws in Nevada to make Nevada more competitive in attracting new
business, for Nevada to remain competitive with a majority of other states that
have modernized their laws and to ensure the safety and soundness of all trust
companies licensed pursuant to the provisions of this chapter or chapter 669 of NRS.

2. Unlike the public trust companies
required to be licensed pursuant to the provisions of chapter 669 of NRS, family trust companies do
not engage or seek to engage in a trust company business with the public but
rather serve solely the interests of members and related parties of a single
family and the grantors and beneficiaries of trust instruments created for the
purposes of estate planning for the family members. Consequently, there is no
public interest to be protected or furthered and requiring the licensing of
family trust companies will not promote the public advantage and convenience.
There are, however, reasons that some family trust companies may wish to obtain
state licensing and appropriate supervision under trust company law.

3. It is the purpose of this chapter to:

(a) Define those persons who are engaged in or
who desire to provide fiduciary services to a single family and its related
interests as a family trust company and who are not doing trust company
business with the public or offering services to the general public; and

(b) Bring under public supervision only those
family trust companies desiring the benefits of being licensed pursuant to the
provisions of this chapter or chapter 669 of
NRS.

NRS 669A.020Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 669A.030 to 669A.090, inclusive, have the meanings ascribed to
them in those sections.

NRS 669A.030“Affiliate” defined.“Affiliate”
means a family affiliate of any family member of the family trust company who
is qualified to serve and any person controlling, controlled by or under common
control with the family trust company.

NRS 669A.050“Designated relative” defined.“Designated
relative” means the common ancestor of the family, who may be either a living
or deceased person. With regard to:

1. A licensed family trust company or a
family trust company applying to be licensed pursuant to this chapter, the
designated relative is the person who is designated in the application for a
license or in the annual renewal of a license.

2. A family trust company other than a
family trust company described in subsection 1, the designated relative is any
person designated by the family trust company in a letter to the Commissioner
sent by certified mail, return receipt requested.

NRS 669A.060“Family affiliate” defined.“Family
affiliate” means a company or other entity with respect to which one or more
family members or affiliates own, directly or indirectly, a material interest
in the company or entity, or possess, directly or indirectly, the power to
direct or cause the direction of the management and policies of that company or
entity, whether through the ownership of voting securities, by contract, power
of direction or otherwise.

(a) Any person within the tenth degree of lineal
kinship of the designated relative;

(b) Any person within the ninth degree of collateral
kinship to the designated relative;

(c) Any nonfamily member who is an individual
beneficiary under a will or trust created by a family member specified in
paragraph (a) or (b), including the spouse and issue of that person;

(d) The spouse and any former spouse of the
designated relative or of any person qualifying as a family member pursuant to
paragraph (a) or (b);

(e) A person who is a relative of a spouse or
former spouse specified in paragraph (c) or (d) who is within the fifth degree
of lineal kinship of the spouse or former spouse;

(f) A family affiliate and the officers, managers
and directors of that family affiliate and their immediate families;

(g) An inter vivos or testamentary trust
established by a family member either individually or jointly with a spouse or
third party and any trustee, advisor or other person assisting with
administration of that trust;

(h) An inter vivos or testamentary trust
established by a person who is not a family member if noncharitable
beneficiaries of that trust include family members;

(i) The estate of a family member;

(j) The estate of a nonfamily member if the
noncharitable beneficiaries of that estate include family members; and

(k) A charitable foundation, a charitable trust
or charitable entity of which a family member is an organizer, incorporator,
officer, member of the governing board, trustee, major donor or noncharitable
beneficiary and the officers, directors, individual trustees and managers of
that foundation, trust or entity and their immediate families.

2. For the purposes of this section:

(a) A family member is not a member of the
public;

(b) A legally adopted person must be treated as a
natural child of the adoptive parents;

(c) A stepchild must be treated as a natural
child of the family member who is or was the stepparent of that child;

(d) Children of a spouse of a family member must
be treated as a natural child of that family member; and

(e) Degrees are calculated by adding the number
of steps from the designated relative through each person to the family member
either directly, in the case of lineal kinship, or through the common ancestor,
in the case of collateral kinship.

3. As used in this section:

(a) “Collateral kinship” means a relationship
that is not lineal, but stems from a common ancestor.

(b) “Lineal kinship” means a family member who is
in the direct line of ascent or descent from the designated relative.

NRS 669A.094Liberal construction of chapter.The
rule that statutes in derogation of the common law are to be strictly construed
has no application to this chapter. This chapter must be liberally construed to
give maximum effect to the principle of freedom of disposition and to the
enforceability of trust instruments. This chapter will control over any
contrary provisions of law.

NRS 669A.095Applicability of chapter.Except
as otherwise provided in this chapter or by specific statute, a family trust
company or licensed family trust company is subject to the provisions of this
chapter only to the extent that the family trust company or licensed family
trust company is engaged in the business of a family trust company or licensed
family trust company, respectively.

1. Except as otherwise specified in the
trust or in this chapter, a family trust company or licensed family trust
company shall comply with the provisions of NRS
165.147.

2. Any fiduciary duties required pursuant
to title 12 or 13 of NRS after October 1, 2015, apply only to a trust or estate
administered by a family trust company or licensed family trust company in this
State which was created, commenced or became irrevocable after the enactment of
such duties. Such duties shall only apply to the extent that they are not
inconsistent or contrary with any provision of this chapter or any terms of the
trust.

NRS 669A.100Family trust company not required to be licensed as trust
company.A family trust company is
not required to be licensed as a trust company pursuant to chapter 669 of NRS. Unless a family trust
company applies for licensure pursuant to chapter
669 of NRS, the family trust company is not:

1. Subject to supervision by the
Commissioner pursuant to this chapter or chapter
669 of NRS; or

2. Except as otherwise provided in this
chapter, subject to the provisions of chapter 669
of NRS applicable to a trust company that offers trust company services to:

NRS 669A.120Exchange of license as trust company for license as family trust
company.A trust company licensed
pursuant to the provisions of chapter 669 of
NRS may exchange its license granted pursuant to that chapter for a license
under this chapter, thereby becoming a licensed family trust company, upon
providing the Commissioner with satisfactory evidence that at or before the
effective date of its license under this chapter, the trust company will:

NRS 669A.130Licensed family trust company has same rights, privileges and
exemptions as trust company.Except
as otherwise provided in NRS 669A.150, a family
trust company licensed pursuant to this chapter has all the rights, privileges
and exemptions from licensing and regulation requirements made applicable by
any law of this State to trust companies licensed pursuant to chapter 669 of NRS, including, without
limitation, the requirements for registration, licensing and supervision set
forth in chapter 90 of NRS.

NRS 669A.135Limitations on liability.Notwithstanding
the provisions of any law to the contrary, a family trust company or licensed
family trust company, or an employee or agent of a family trust company or
licensed family trust company, is not liable to an interested person for any
transaction, decision to act or decision to not act if the family trust company
or licensed family trust company or employee or agent thereof acted in good
faith and in reasonable reliance on the express terms of a trust instrument, a
written consent, a court order, a nonjudicial settlement agreement or a written
waiver contained in a trust instrument or in a separate written instrument such
as a waiver of any duty to diversify. Good faith shall be presumed unless
rebutted by clear and convincing evidence to the contrary.

1. At least one officer of the licensed
family trust company who is a resident of this State;

2. A physical office in this State where
original or true copies of all material business records and accounts of the
licensed family trust company may be accessed and readily available for
examination by the Division of Financial Institutions;

3. A registered agent, with an office at
the street address of the registered agent, in this State;

4. All applicable state and local business
licenses, registrations and permits; and

5. A bank account with a state chartered
or national bank having a principal or branch offices in this State.

NRS 669A.150Unlawful to use or advertise word “trust” as part of name;
exceptions.

1. Except as otherwise provided in
subsections 2 and 3, or pursuant to the provisions of NRS 669.095, a family trust company formed
and doing business under the laws of this State or any other state shall not:

(a) Advertise its services to the public; or

(b) Use the word “trust” or any direct derivative
of that word as a part of its name.

2. The provisions of subsection 1 do not
apply to a family trust company which is licensed pursuant to chapter 669 of NRS.

3. The provisions of paragraph (b) of
subsection 1 do not apply to a licensed family trust company.

NRS 669A.160Minimum stockholders’ equity required for organization and
operation.A licensed family trust
company must not be organized or operated with a stockholders’ equity of less
than $300,000. The full amount of the initial stockholders’ equity must be paid
in cash, exclusive of all organization expenses, before the licensed family
trust company is authorized to commence business as a licensed family trust
company.

NRS 669A.170Certain organizational structure required for domestic family
trust company; authority to do business in this State required for foreign
family trust company.An applicant
for a license to conduct business as a licensed family trust company under this
chapter must be organized as a corporation or limited-liability company under
the laws of this State or authorized to do business in this State as a foreign
corporation or foreign limited-liability company.

NRS 669A.180Certain provisions required in articles of incorporation,
certificate of incorporation or articles of organization of domestic family
trust company; limitation on use of certain names by foreign trust company.

1. If a licensed family trust company is
organized under the laws of this State as a corporation or limited-liability
company, the articles of incorporation, certificate of incorporation or
articles of organization must contain:

(a) The name adopted by the licensed family trust
company, which must be such as to distinguish it from any other trust company
formed or incorporated in this State, or engaged in the business of a trust
company or licensed family trust company in this State; and

(b) The purpose for which it is formed.

2. The provisions of subsection 1 do not
apply to a licensed family trust company which is licensed or chartered to do
business as a trust company under the laws of another state, but the licensed
family trust company must use a name that distinguishes it from any other trust
company organized as or conducting the business of:

1. An applicant for a license as a family
trust company must file an application with the Commissioner on forms
prescribed by the Commissioner. The application must contain or be accompanied
by such information as the Commissioner requires.

2. A nonrefundable fee of not more than
$3,000 must accompany the application. The applicant must also pay such
reasonable additional expenses incurred in the process of investigation as the
Commissioner deems necessary. In addition, a fee of not less than $300 or more
than $1,000, prorated on the basis of the licensing year as provided by the
Commissioner, must be paid at the time of making the application.

3. A licensed family trust company may
maintain offices in this and other states. For every branch location of a
family trust company organized under the laws of this State, and every branch
location in this State of a foreign family trust company electing to be
licensed as a family trust company in this State, a request for approval and
licensing must be filed with the Commissioner on such forms as the Commissioner
prescribes. A nonrefundable fee of not more than $500 must accompany each
request. In addition, a fee of not more than $200, prorated on the basis of the
licensing year as provided by the Commissioner, must be paid at the time of
making the request.

4. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section. All money received by the Commissioner pursuant to this section must
be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

5. The Commissioner shall consider an application
to be withdrawn if the Commissioner has not received all information and fees
required to complete the application within 12 months of the Commissioner’s
first request therefor or within such later period as the Commissioner
determines. If an application is deemed to be withdrawn pursuant to this
subsection or if an applicant otherwise withdraws an application, the
Commissioner must not issue a license to the applicant unless the applicant
submits a new application and pays any required fees.

NRS 669A.200Investigation of applicant; rights of applicant upon denial of
license; entry of final order; judicial review.

1. Within 60 days after the application
for a license as a family trust company is filed, the Commissioner shall
investigate the facts of the application and the other requirements of this
chapter to determine:

(a) That the persons who will serve as directors
or officers of the corporation, or the managers or members acting in a
managerial capacity of the limited-liability company, as applicable:

(1) Have a good reputation for honesty,
trustworthiness and integrity and display competence to transact the business
of a licensed family trust company. The applicant must submit satisfactory
proof of these qualifications to the Commissioner.

(2) Have not been convicted of, or entered
a plea of nolo contendere to, a felony or any crime involving fraud,
misrepresentation or moral turpitude.

(3) Have not made a false statement of
material fact on the application.

(4) Have not had a license that was issued
pursuant to the provisions of this chapter or chapter
669 of NRS suspended or revoked within the 10 years immediately preceding
the date of the application.

(5) Have not had a license as a trust
company which was issued in any other state, district or territory of the
United States or any foreign country suspended or revoked within the 10 years
immediately preceding the date of the application.

(6) Have not been found guilty of any
violation of any of the provisions of this chapter or any regulation adopted
pursuant thereto that in the judgment of the Commissioner would render the
person unfit for the proposed position.

(b) That the financial status of the directors
and officers of the corporation, or the managers or members acting in a
managerial capacity of the limited-liability company, as applicable, is
consistent with their responsibilities and duties.

(c) That the name of the proposed company
complies with the provisions of NRS 657.200.

(d) That the initial stockholders’ equity is not
less than the required minimum.

2. Notice of the entry of an order
refusing a license to a family trust company must be given in writing, served
personally or sent by certified mail to the company affected. The company, upon
application, is entitled to a hearing before a hearing officer appointed by the
Director of the Department of Business and Industry, but if no such application
is made within 30 days after the entry of an order refusing a license to any company,
the Commissioner shall enter a final order.

3. If the hearing officer affirms the
order of the Commissioner refusing the license, the applicant may file a
petition for judicial review pursuant to NRS
233B.130.

1. On or before April 1 of each year, each
licensed family trust company must pay to the Division of Financial
Institutions a license fee of $1,500. All money collected under the provisions
of this section must be deposited in the State Treasury pursuant to the
provisions of NRS 658.091.

2. A licensed family trust company which
identifies a new designated relative when the licensed family trust company
renews its license shall pay an additional annual license fee for renewal in
such amount as the Commissioner shall determine.

(c) Exercise the powers of a business corporation
or a limited-liability company organized or qualified as a foreign corporation
or a limited-liability company under the laws of this State and any incidental
powers that are reasonably necessary to enable it to fully exercise, in
accordance with commonly accepted customs and usages, a power conferred in this
chapter.

(d) Do and perform all acts necessary or
incidental to exercise the powers enumerated in this section or authorized by
this chapter and any other applicable laws of this State.

2. A family trust company shall not engage
in any:

(a) Banking with the public; or

(b) Trust company business with the public unless
licensed pursuant to chapter 669 of NRS.

NRS 669A.222Appointment of guardian for certain persons who are not
residents of this State.Any court
of competent jurisdiction may appoint a guardian of the estate or guardian ad
litem for incompetents or minors who are not residents of this State and who
are family members or beneficiaries of a trust or an estate for which a family
trust company or licensed family trust company administers the trust or estate
in this State.

1. Except as otherwise provided in
subsections 2 and 3, if specifically nominated in the trust instrument, one or
more persons may be designated to represent and bind a beneficiary of a trust
administered by a family trust company or licensed family trust company and to
receive any notice, information, accounting or report regarding the trust. The
trust instrument may also authorize any person or persons, other than a
trustee, to designate one or more persons to represent and bind a beneficiary
and to receive any notice, information, accounting or report.

2. A person designated to represent and
bind a beneficiary of a trust, as provided in subsection 1, may not represent
and bind a beneficiary while that person is serving as a trustee of that trust.

3. Notwithstanding any provision of law to
the contrary, a person designated to represent and bind a beneficiary of a
trust, as provided in subsection 1, may not represent and bind a beneficiary if
that person is also a beneficiary, unless that person is:

(a) Specifically nominated in the trust
instrument;

(b) The beneficiary’s spouse; or

(c) A parent, grandparent or descendant of a
grandparent of the beneficiary or the beneficiary’s spouse.

4. A person designated to represent and
bind a beneficiary of a trust, as provided in subsection 1, is not liable to
that beneficiary or his or her agent or successor for any acts or omissions
made in good faith.

1. In addition to the transactions
authorized by NRS 669A.230 and notwithstanding the
provisions of any other law to the contrary, while acting as the fiduciary of a
trust, a family trust company or licensed family trust company may:

(a) Invest in a security of an investment company
or investment trust for which the family trust company or licensed family trust
company, or a family affiliate, provides services in a capacity other than as a
fiduciary;

(b) Place a security transaction using a broker
that is a family affiliate;

(c) Invest in an investment contract that is
purchased from an insurance company or carrier owned by or affiliated with the
family trust company or licensed family trust company, or a family affiliate;

(d) Enter into an agreement with a beneficiary or
grantor of a trust with respect to the appointment or compensation of the
fiduciary or a family affiliate;

(e) Transact with another trust, estate,
guardianship or conservatorship for which the family trust company or licensed
family trust company is a fiduciary or in which a beneficiary has an interest;

(f) Make an equity investment in a closely held
entity that may or may not be marketable and that is owned or controlled,
either directly or indirectly, by one or more beneficiaries, family members or
family affiliates;

(g) Deposit trust money in a financial
institution that is owned or operated by a family affiliate;

(h) Delegate the authority to conduct any
transaction or action pursuant to this section to an agent of the family trust
company or licensed family trust company, or a family affiliate;

(i) Purchase, sell, hold, own or invest in any
security, bond, real or personal property, stock or other asset of a family
affiliate;

(2) Another trust managed by the family
trust company or licensed family trust company; or

(3) A family affiliate;

(k) Act as proxy in voting any shares of stock
which are assets of the trust;

(l) Exercise any powers of control with respect
to any interest in a company that is an asset of the trust, including, without
limitation, the appointment of officers or directors who are family affiliates;
and

(m) Receive reasonable compensation for its
services or the services of a family affiliate.

2. A transaction or action authorized
pursuant to subsection 1 must:

(a) Be for a fair price, if applicable;

(b) Be in the interest of the beneficiaries; and

(c) Comply or not be inconsistent with:

(1) The terms of the trust instrument
establishing the fiduciary relationship;

3. Except as otherwise provided in
subsection 2, nothing in this section prohibits a family trust company or
licensed family trust company from transacting business with or investing in
any asset of:

(a) A trust, estate, guardianship or
conservatorship for which the family trust company or licensed family trust
company is a fiduciary;

(b) A family affiliate; or

(c) Any other company, agent, entity or person
for which a conflict of interest may exist.

4. A conflict of interest between the
fiduciary duty and personal interest of a family trust company or licensed
family trust company does not void a transaction or action that:

(a) Complies with the provisions of this section;
or

(b) Occurred before the family trust company or
licensed family trust company entered into a fiduciary relationship pursuant to
a trust instrument.

5. A transaction by or action of a family
trust company or licensed family trust company authorized by this section is
not voidable if:

(a) The transaction or action was authorized by
the terms of the trust;

(b) The transaction or action was approved by a
court or pursuant to a court order;

(c) No interested person commenced a legal action
relating to the transaction or action pursuant to subsection 6;

(d) The transaction or action was authorized by a
valid consent agreement, release or pursuant to the issuance of a notice of
proposed action issued pursuant to NRS
164.725; or

(e) The transaction or action occurred before the
family trust company or licensed family trust company entered into a fiduciary
relationship pursuant to a trust instrument.

6. A legal action by an interested person
alleging that a transaction or action by a family trust company or licensed
family trust company is voidable because of the existence of a conflict of
interest must be commenced within 1 year after the date on which the interested
person discovered, or by the exercise of due diligence should have discovered,
the facts in support of his or her claim.

7. Notwithstanding the provisions of any
other law to the contrary, a family trust company or licensed family trust
company is not required to obtain court approval for any transaction that
otherwise complies with the provisions of this section.

8. Notwithstanding the provisions of any
other law to the contrary, any transaction between a family trust company or a
licensed family trust company and a beneficiary of a trust or the spouse or
family member of a beneficiary shall not be presumed to be a conflict of
interest or a violation of fiduciary duty.

(b) Have an aggregate market value that equals or
exceeds 100 percent of the company’s required stockholders’ equity.

2. A licensed family trust company may
purchase or rent real or personal property for use in the conduct of the
business and other activities of the company.

3. Except as otherwise provided in NRS 669A.225 and notwithstanding any other provisions
of law to the contrary, a licensed family trust company may invest its funds
for its own account, other than those required or permitted to be maintained by
subsection 1 or 2, in any type or character of equity securities, debt
securities or other asset provided the investment complies with the prudent
investor standards set forth in NRS 164.700
to 164.775, inclusive.

4. Except as otherwise provided in NRS 669A.225 and notwithstanding the provisions of
any other law to the contrary, a family trust company is authorized while acting
as a fiduciary to purchase for the fiduciary estate, directly from underwriters
or distributors or in the secondary market:

(a) Bonds or other securities underwritten or
distributed by the family trust company or an affiliate thereof or by a
syndicate which includes the family trust company, provided that the family
trust company discloses in any written communication or account statement
reflecting the purchase of those bonds or securities the nature of the interest
of the family trust company in the underwriting or distribution of those bonds
and securities and whether the family trust company received any fee in
connection with the purchase; and

(b) Securities of any investment company for
which the family trust company acts as advisor, custodian, distributor,
manager, registrar, shareholder servicing agent, sponsor or transfer agent, or
provided the family trust company discloses in any written communication or
account statement reflecting the purchase of the securities the nature of the
relationship and whether the family trust company received any fee for
providing those services.

5. Except as otherwise provided in NRS 669A.225, the authority granted in subsection 4
may be exercised only if:

(a) The investment is not expressly prohibited by
the instrument, judgment, decree or order establishing the fiduciary
relationship;

(b) The family trust company discloses in writing
to the person or persons to whom it sends account statements its intent to
exercise the authority granted in subsection 4 before the first exercise of
that authority; and

(c) The family trust company procures in writing
the consent of its cofiduciaries with discretionary investment powers, if any,
to the investment.

6. Except as otherwise provided in NRS 669A.225, a family trust company may:

(a) Invest in the securities of an investment
company or investment trust, to which the family trust company or its affiliate
provides services in a capacity other than as trustee. The investment is not
presumed to be affected by a conflict between personal and fiduciary interests
if the investment complies with the prudent investor standards set forth in NRS 164.700 to 164.775, inclusive.

(b) Be compensated by an investment company or
investment trust described in paragraph (a) for providing services in a
capacity other than as trustee if the family trust company discloses at least
annually to each person to whom it sends account statements the rate and method
by which the compensation was determined.

7. Except as otherwise provided in NRS 669A.225, nothing in subsections 4, 5 and 6 shall
affect the degree of prudence which is required of fiduciaries under the laws
of this State. Any bonds or securities purchased under authority of this
section are not presumed to be affected by a conflict between the fiduciary’s
personal and fiduciary interest if the purchase of the bonds or securities:

(2) The terms of the instrument, judgment,
decree or order establishing the fiduciary relationship.

8. Except as otherwise provided in NRS 669A.225 and notwithstanding the provisions of
subsections 4 to 7, inclusive, a family trust company which is authorized to
exercise trust powers in this State and which is acting as a fiduciary shall
not purchase for the fiduciary estate any fixed income or equity security
issued by the family trust company or an affiliate thereof unless:

(a) The family trust company is expressly
authorized to do so by:

(1) The terms of the instrument creating
the trust;

(2) A court order;

(3) The written consent of the grantor of
the trust; or

(4) The written consent of every adult
beneficiary of the trust who, at the time notice is provided pursuant to
paragraph (b) of subsection 5, receives or is entitled to receive income under
the trust or who would be entitled to receive a distribution of principal if
the trust were terminated; or

(II) The terms of the instrument,
judgment, decree or order establishing the fiduciary relationship.

9. As used in this section:

(a) “Face-amount certificate” has the meaning
ascribed to it in 15 U.S.C. § 80a-2(a)(15).

(b) “Government securities” has the meaning
ascribed to it in 15 U.S.C. § 80a-2(a)(16).

(c) “Investment company” means any issuer which:

(1) Is or holds itself out as being
engaged primarily, or proposes to engage primarily, in the business of
investing, reinvesting or trading in securities;

(2) Is engaged or proposes to engage in
the business of issuing face-amount certificates of the installment type, or has
been engaged in such business and has any such certificate outstanding; or

(3) Is engaged or proposes to engage in
the business of investing, reinvesting, owning, holding or trading in
securities, and owns or proposes to acquire investment securities having a
value exceeding 40 percent of the value of the total assets of the issuer,
exclusive of government securities and cash items, on an unconsolidated basis.

(d) “Issuer” has the meaning ascribed to it in 15
U.S.C. § 80a-2(a)(22).

1. A family trust company or licensed
family trust company and an interested person may enter into a nonjudicial
settlement agreement with respect to any matter involving the management,
administration or interpretation of a trust that is managed pursuant to this
chapter.

2. A nonjudicial settlement agreement that
is entered into pursuant to this section must not contain:

(a) Terms that violate a material purpose of the
trust; or

(b) Terms or conditions that could not be
approved by a court.

3. The matters that may be resolved by a
nonjudicial settlement agreement which is entered into pursuant to this section
include, without limitation:

(a) Those pertaining to any transaction or action
authorized pursuant to paragraphs (a) to (m), inclusive, of subsection 1 of NRS 669A.225;

(b) The investment or use of trust assets;

(c) The lending or borrowing of money;

(d) The addition, deletion or modification of a
term or condition of the trust;

(e) The interpretation or construction of a term
or condition of the trust;

(f) The designation or transfer of the principal
place of administration of the trust;

(g) The approval of a report or accounting that
is provided pursuant to NRS 669A.255;

(h) Direction to a fiduciary to refrain from
performing a particular act or the grant to a fiduciary of any necessary or
desirable power;

(i) The resignation or appointment of a
fiduciary;

(j) The liability of a fiduciary for an action
related to the management of the trust; and

(k) The termination of the trust.

4. After notice has been provided pursuant
to NRS 669A.235, a family trust company or
licensed family trust company or an interested person may petition a court to
approve a nonjudicial settlement agreement, to determine whether the
nonjudicial settlement agreement was accurately represented to each interested
person or to determine whether the nonjudicial settlement agreement contains
terms or conditions that the court could approve. A family trust company or
licensed family trust company is not liable to an interested person for taking
an action that is authorized by a nonjudicial settlement agreement which has
been approved by a court.

1. A family trust company or licensed
family trust company shall provide written notice by personal service or by
certified mail to each interested person who is a necessary party to a
nonjudicial settlement agreement entered into pursuant to NRS 669A.233. A family trust company or licensed
family trust company is not required to provide notice to any interested person
who has consented in writing to the nonjudicial settlement agreement.

2. The notice provided pursuant to this
section must:

(a) Be provided at least 15 days before the
execution of the nonjudicial settlement agreement;

(b) Include a true and correct copy of the nonjudicial
settlement agreement;

(c) State that the notice is provided pursuant to
this section and NRS 669A.233;

(d) State the name and mailing address of the
family trust company or licensed family trust company;

(e) State the date by which an objection to the
nonjudicial settlement agreement must be made; and

(f) State the date on which the nonjudicial
settlement agreement is to be executed.

3. An interested person who receives notice
pursuant to this section may object to any term or condition of, or any act
that is authorized by, the nonjudicial settlement agreement by submitting his
or her objection in writing to the family trust company or licensed family
trust company within 1 year after the date on which the interested person
received the notice. Except as otherwise provided in subsection 5, if an
interested person does not object within 1 year after receiving notice, his or
her objection is waived, and the interested person may not bring any action
relating to the terms and conditions of, or any act taken pursuant to, the
nonjudicial settlement agreement.

4. An interested person who objects within
the period specified in subsection 3 may petition the court for an order to approve,
disapprove, enforce or modify the nonjudicial settlement agreement. The burden
is on the interested person to prove that the nonjudicial settlement agreement
should be approved, disapproved, enforced or modified.

5. The provisions of subsection 3 do not
prohibit an interested person who has received notice pursuant to this section
and who fails to object to the nonjudicial settlement agreement within 1 year
after receiving the notice from bringing an action alleging that the
nonjudicial settlement agreement was procured fraudulently, or entered into by
the family trust company or licensed family trust company in bad faith or in
willful violation of the terms of the trust. A person who brings such an action
has the burden of proving by clear and convincing evidence that the nonjudicial
settlement agreement was procured fraudulently, in bad faith or in willful
violation of the terms of the trust.

6. Except as otherwise provided in
subsection 5, if no interested person who is entitled to receive notice
pursuant to this section objects to the nonjudicial settlement agreement within
1 year after receiving the notice, a family trust company or licensed family
trust company is not liable to any interested person for taking any action that
is authorized by the nonjudicial settlement agreement.

1. A family trust company or licensed
family trust company may refrain from taking an action that is authorized by a
nonjudicial settlement agreement if the family trust company or licensed family
trust company determines in good faith that the action is not in the interest
of the beneficiaries of the trust.

2. A family trust company or licensed
family trust company that refrains from taking an action pursuant to subsection
1 shall provide written notice to each interested person within 15 days after
its decision not to take the action and include in the notice the reasons for
not taking the action.

3. An interested person who receives
notice pursuant to subsection 2 may petition the court for an order requiring
the family trust company or licensed family trust company to take the action
authorized by the nonjudicial settlement agreement. The burden is on the
beneficiary to prove that the proposed action is in the interest of the
beneficiaries of the trust and should be taken.

4. A family trust company or licensed
family trust company is not liable to an interested person for not taking an
action that is authorized by a nonjudicial settlement agreement if the family
trust company or licensed family trust company acted in good faith in not
taking the action.

NRS 669A.240Discontinuing business.Whenever
a licensed family trust company desires to discontinue its business as a family
trust company, it shall furnish to the Commissioner satisfactory evidence of
its release and discharge from all the obligations and trusts which it has
assumed or which have been imposed by law. Thereafter, the Commissioner shall
enter an order cancelling the license of the family trust company.

1. The directors or managers of a licensed
family trust company shall obtain fidelity bonds in such amounts as they shall
determine on any active officers, managers, members acting in a managerial
capacity and employees, whether or not they receive a salary or other
compensation from the licensed family trust company, to indemnify the licensed
family trust company against loss because of any dishonest, fraudulent or
criminal act or omission by any of the persons bonded, acting alone or in
combination with any other person. The bonds may be in any form and may be paid
for by the licensed family trust company.

2. A licensed family trust company may
also procure property and casualty insurance of a nature and with such coverage
amounts as the licensed family trust company deems advisable.

1. Except as otherwise provided in
subsection 4, a family trust company or licensed family trust company, while
acting as the fiduciary of a trust, shall provide an annual report to each
beneficiary who is entitled to an account under the terms of the trust or
applicable law for each year of the existence of the trust until the trust is
terminated, at which time the family trust company shall provide to each such
beneficiary a final report. The annual report or final report may be in the
form of a report as described in subsection 2 or 6, an account as provided in chapter 165 of NRS or any other law applicable
to the trust. An annual report or final report provided pursuant to this
section is deemed to be an account for the purposes of chapter 165 of NRS.

2. A report that is provided pursuant to
this section must, for the year immediately preceding the report, provide an
accounting of:

(a) Each asset and liability of the trust and its
current market value or amount, if known;

(b) Each disbursement of income or principal,
including the amount of the disbursement and to whom the disbursement was made;

(c) All payments of compensation from any source
to the family trust company or licensed family trust company or any other
person for services rendered; and

(d) Any other transaction involving an asset of
the trust.

3. A beneficiary who is entitled to a
report pursuant to this section may waive his or her right to the report by
submitting a written waiver to the family trust company or licensed family
trust company. Any beneficiary who waives his or her right to a report may
withdraw the waiver by submitting to the family trust company or licensed
family trust company a written request for a report.

4. A family trust company or licensed
family trust company is not required to provide a report pursuant to this section
if the terms of the trust provide otherwise.

5. A family trust company or licensed
family trust company may require a beneficiary who is entitled to receive
confidential information pursuant to this section to execute a confidentiality
agreement before providing the person with any confidential information.

6. In lieu of the information that a
trustee is required to provide to a beneficiary pursuant to subsection 2, a
trustee may provide to a beneficiary a statement indicating the accounting period
and a financial report of the trust which is prepared by a certified public
accountant and which summarizes the information required by paragraphs (a) to
(d), inclusive, of subsection 2. Upon request, the trustee shall make all the
information used in the preparation of the annual or final report available to
each beneficiary who was provided a copy of the financial report pursuant to
this subsection.

7. For the purposes of this chapter,
information provided by a trustee to a beneficiary pursuant to subsection 6 is
deemed an annual report.

8. A trustee may provide an annual report
to a beneficiary via electronic mail or through a secure Internet website.

9. Notwithstanding the provisions of any
other law to the contrary, any beneficiary of a trust administered by a family
trust company or licensed family trust company not otherwise entitled to
receive an account or annual report under the terms of the trust or applicable
law shall have no right to demand an account or annual report of the trust.

10. A family trust company or licensed
family trust company acting as trustee shall allocate to income the portion of
compensation to the trustee and any person providing investment or custodial
services to the trustee as determined by the family trust company or licensed
family trust company, except as otherwise provided in:

1. In any court proceeding relating to a
trust or estate, the family trust company, licensed family trust company, other
fiduciary of the trust, settlor or any beneficiary, may petition the court to
order the following trust documents to be sealed:

(a) Any trust instruments;

(b) Any inventories;

(c) Any accounts;

(d) Any statements filed by a fiduciary;

(e) Any annual reports of a fiduciary;

(f) Any final reports of a fiduciary;

(g) All petitions, exhibits, objections,
pleadings and motions relevant to the trust or its administration; and

(h) All court orders.

2. Any documents sealed by a court
pursuant to subsection 1 may not be made part of the public record but are
available to the court, any fiduciary of the trust, the beneficiaries or
settlor of the trust or their attorneys, and to other interested parties as the
court may order upon a showing of good cause.

1. Any communication between an attorney
and a family trust company or licensed family trust company acting as a
fiduciary is privileged and protected from disclosure to the same extent as if
the client were acting in his or her individual capacity.

2. The privilege is not waived by:

(a) A fiduciary relationship between the family
trust company or licensed family trust company and a beneficiary of a trust; or

(b) The use of trust property to compensate the
attorney for legal services rendered to the family trust company or licensed
family trust company as a fiduciary.

3. The attorney-client relationship
between an attorney and a family trust company or licensed family trust company
acting as a fiduciary shall not extend to a successor fiduciary to the family
trust company or licensed family trust company.

4. A family trust company or licensed
family trust company acting as a fiduciary and its successor fiduciary may,
pursuant to an agreement, share privileged communications relating to the trust
or estate. The disclosure of privileged communications under the agreement does
not waive the disclosing party’s privilege. Unless otherwise specified in the
agreement, privileged communications disclosed under the agreement shall not be
disclosed to a third party without the disclosing party’s consent.

5. This section does not abridge, limit,
impair, create, enlarge or otherwise affect the law governing exceptions to the
attorney-client privilege relative to a claimant through the same deceased
person.

1. The Commissioner may examine the books
and records of a licensed family trust company. For each examination of the
books and records of a licensed family trust company as authorized under this
chapter, the Commissioner shall charge and collect from the licensed family
trust company a fee for conducting the examination and in preparing, typing and
copying the report of the examination at the rate established pursuant to NRS 658.101.

2. All money collected under this section
must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

NRS 669A.270Regulations of Commissioner; determination of organization as
family trust company.

1. The Commissioner may adopt such
regulations as may be necessary to carry out the purposes and provisions of this
chapter.

2. The Commissioner may issue rules,
orders, approvals, declaratory rulings or interpretations which determine, in
individual circumstances or circumstances of more general applicability,
whether an existing or proposed family trust company meets, or family trust
companies within such circumstances of more general applicability would meet,
the definition of a family trust company. Any person applying for such a
determination shall pay an application fee to the Division of Financial Institutions
upon submittal of that application for a determination in such amount as the
Commissioner shall prescribe.

1. The violation of any of the provisions
of this chapter by the officers or directors, or the managers or members acting
in a managerial capacity, of any licensed family trust company is sufficient
cause for the Commissioner to revoke the license of the family trust company.

2. If a licensed family trust company or
any person authorized to act on behalf of the family trust company refuses to
allow the Commissioner or the Commissioner’s deputies to inspect all books,
records, papers and effects of the business of the family trust company, the
Commissioner may revoke the license of the licensed family trust company.

1. If a licensed family trust company
fails to submit within the prescribed period any report required pursuant to
this chapter or any regulation adopted pursuant thereto, the Commissioner may
impose and collect a fee of not more than $25 for each day the report is overdue.

2. The Commissioner shall adopt
regulations establishing the amount of the fee that may be imposed pursuant to
this section.

NRS 669A.300Willful neglect to perform duties imposed by law or failure to
conform to material lawful requirement made by Commissioner; removal.Each officer, director, manager, member,
employee or agent of a licensed family trust company who, following written
notice from the Commissioner sent by certified mail, knowingly or willfully:

1. Neglects to perform any duty required
by this chapter or other applicable law; or

2. Fails to conform to any material lawful
requirement made by the Commissioner,

NRS 669A.310Confidentiality of certain records and documents; authority of
Commissioner to use discretion in determining disclosure.

1. Except as otherwise provided in this
section, any application and personal or financial records submitted by a
person pursuant to the provisions of this chapter, any personal or financial
records or other documents obtained by the Division of Financial Institutions
pursuant to an examination or audit conducted by the Division pursuant to this
chapter and any other private information relating to a family trust company
are confidential and may be disclosed only to:

(a) The Division, any authorized employee of the
Division and a state or federal agency investigating activities regulated
pursuant to this chapter;

(b) The Department of Taxation for its use in
carrying out the provisions of chapter 363C
of NRS; and

(c) Any other person if the Commissioner, in the
Commissioner’s discretion, determines that the interests of the public in
disclosing the information outweigh the interests of the person about whom the
information pertains in not disclosing the information.

2. The Commissioner shall give to the
family trust company to which the information relates 10-days’ prior written
notice of intent to disclose confidential information directly or indirectly to
a person pursuant to paragraph (c) of subsection 1. Any family trust company
which receives such a notice may object to the disclosure of the confidential
information and will be afforded the right to a hearing in accordance with the
provisions of chapter 233B of NRS. If a
family trust company requests a hearing, the Commissioner may not reveal
confidential information prior to the conclusion of the hearing and a ruling.
Prior to dissemination of any confidential information, the Commissioner shall
require a written agreement not to reveal the confidential information by the
party receiving the confidential information. In no event shall the
Commissioner disclose confidential information to the general public, any
competitor or any potential competitor of a family trust company.

3. Nothing in this chapter is intended to
preclude a law enforcement officer from gaining access to otherwise
confidential records by subpoena, court order, search warrant or other lawful
means. Notwithstanding any other provision of this chapter, the Commissioner
shall have the ability to share information with other out of state or federal
regulators with whom the Department of Business and Industry has an agreement
regarding the sharing of information. Nothing in this chapter is intended to
preclude any agency of this State from gaining access to otherwise confidential
records in accordance with any applicable law.